Red Envelope Madness!

Tuesday, March 22, 2005

ZDAG - Consortium

From what I can figure, the ZDAG Consortium follows the business model patented by Netflix, of providing DVD rentals by mail by subscription. However, it appears to be made up of a consortium of several different video stores located around the country who act as individual stand-alone distribution centers. Each store distributes titles from their own inventory. Although they are not pooling inventory, they are cooperating by sharing a Web site and marketing expenses. When you join, you pick the store nearest you to be your distribution center. Right now, they have locations in Northern and Southern California, New York, New Jersey, and Ohio. I suppose, if you already operate a video store and you want to add an online rental service, this is one option for you.

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